TransUnion CIBIL Limited, commonly known as CIBIL, is the leading credit information company (credit bureau) in India. The key function of CIBIL is to provide a credit report and credit score for individuals and credit rank for companies, which are the decisive factors in getting new credit applications approved.
In the following sections, we will discuss key details about CIBIL and its role in the borrowing process.
What is the Role of CIBIL in the Lending Process?
CIBIL is authorized to collect credit data and generate credit reports for both individuals as well as companies. These reports play a key role in the approval of applications for new credit such as loans and credit cards. The details of this process are as follows:
- Banks and financial institutions such as NBFCs submit their credit data (individual as well as company) i.e. outstanding loan amount, repayment trends, new loan/credit card applications etc. on a monthly basis to CIBIL
- TransUnion CIBIL collates this data and uses it to generate credit reports for individuals that include CIBIL Score as well as credit reports for businesses that contain CIBIL Rank
- Lenders can check the CIBIL report as well as the CIBIL Score/CIBIL Rank to evaluate the risk of lending to applicants and accordingly approve or reject new loan/credit card applications